Platina Resources Ltd (ASX:PGM) made considerable progress during FY2021 and is well-funded to continue building a strong Australian gold portfolio.
The company had an early win in June 2020 when it acquired a 100% interest in the Challa Gold Project between the prolific Mt Magnet and Sandstone gold districts in Western Australia.
By the end of 2020, the company had also taken a major stake in Nelson Resources Ltd (ASX:NES), a Western Australian gold explorer whose flagship Woodline Project is in the Yilgarn Craton.
In April this year, Platina also expanded its gold presence in the west after acquiring the Xanadu Gold Project in the Ashburton Province close to the multi-million-ounce Mt Olympus gold deposit.
Platina’s gold exploration tenements in Western Australia.
Xanadu project
Xanadu location and tenure summary.
Xanadu comprises seven prospecting licences and five exploration licences covering 498 square kilometres with logistics and operations expected to be low cost with access to the project from the regional mining centre of Paraburdoo, 38 kilometres to the north.
Notably, the project has been the subject of several mainly shallow drilling programs and a historical gold heap leach operation.
Xanadu has strong appeal given the number and width of economic grade gold drill intercepts which have never been followed up with a systematic exploration campaign.
Platina's exploration strategy will initially comprise low-cost geophysics and geochemistry to build a deeper knowledge of the geological potential of the project and to define both shallow and deeper targets for drilling.
Challa project
Location of Challa Gold Project in Western Australia.
The Challa Gold Project provides Platina with exposure to a world-class gold province at a very low entry cost.
The project includes two high-quality exploration licences granted in July 2020 covering 293 square kilometres.
During the period, more than 4,000 soil samples were assayed to define several prospective anomalies; However, the soil sampling programs have been disrupted by abnormally high levels of rainfall.
Looking ahead,once heritage clearance is finalised, an aircore drilling program will be completed to identify bedrock anomalies for deeper drilling.
Scandium project
Platina Scandium Project location
The Platina Scandium Project in central NSW is one of the world’s highest-grade scandium deposits and has the potential to be Australia’s first scandium producer with platinum, cobalt and nickel credits.
Platina’s prime objective is to secure production offtake agreements, which will enable project financing options to be pursued for construction funding.
The company is actively working on a scandium offtake marketing program, which is targeting potential customers in the USA, Europe, Asia and Australia.
During the period, Platina commissioned CM Group to update the scandium market study previously prepared for 2018 DFS.
Other interests
Platina controls a 30% interest in the Munni Munni Project while partner Artemis Resources Ltd (ASX:ARV, ASX:ARV) has the remaining 70% interest and is the project operator.
An exploration and drilling program during the period at the project near Karratha in Western Australia confirmed the project as one of Australia’s largest undeveloped palladium deposits with endowments of platinum, gold and rhodium.
During the period, Platina has applied for an exploration licence (E 09/2423) at Mt Narryer South, 580 kilometres north of Perth and 300 kilometres northwest of the company’s Challa Project.
The exploration licence application covers 165 square kilometres and, like Challa, is within the Yilgarn Craton
International assets divested
During FY21 Platina sold its Skaergaard gold and palladium project in Greenland for A$13.7 million in November 2020 as part of a revised strategy to redirect focus away from overseas territories as international COVID-19 restrictions persisted.
Canadian-listed Major Precious Metals Corp acquired Platina’s stake with the ASX-listed junior receiving C$500,000 in cash (A$520,000) and 55 million Major shares.
During the period, Platina also withdrew from the Blue Moon Zinc Corp Joint Venture in the US, following the prolonged suspension of field activities.
Blue Moon hosts a drill-ready high-grade VMS-style zinc-copper-gold deposit with resource expansion and development potential, and the company has retained a 5% equity in the Canadian-listed company which has ownership of the project.